Paris St Germain have reportedly pulled out of the race to sign the Croatia star, who is at the centre of one of the transfer sagas of the summer for a second straight year after being denied a move to Chelsea 12 months ago.

Villas-Boas told reporters: "Until we receive a suitable offer for the player, he will not go. The contacts we have had with other clubs have not met with what Tottenham wants for the player.

"We respect the size of Madrid and the other interested clubs, but they must respect what we are doing, too."

Selling Modric would have a huge impact on Villas-Boas' ability to bring in new signings, especially a top striker.

Tottenham have been heavily linked with Brazil's Leandro Damiao but the player's club, Internacional, are demanding a huge transfer fee of their own.

President Giovanni Luigi told O Jogo: "I think it's very hard for the transfer to happen unless Tottenham pay the €60million (£47million) buyout fee that is included in his contract.

"Leandro Damiao has four more years on his contract. He is a very well-paid player and has nothing to complain about. And we don't need to sell. We are a rich club with an enviable structure."

Spurs have also been linked with Inter Milan goalkeeper Julio Cesar as a cut-price alternative to Lyon's Hugo Lloris.

It has been suggested Inter are keen to get the Brazilian off their wage bill following the arrival of Slovenian No 1 Samir Handanovic.

There were also reports today claiming Tottenham striker Jermain Defoe was on Sunderland's radar, although the Londoners are unlikely to sell before bringing in at least one new goalscorer.